Civil Judge Examination Civil Law-I Syllabus

What is a wagering agreement and its status under Section 30?

An agreement to pay money or money's worth on the happening or non-happening of an uncertain event, where parties have no interest other than the stake. Such agreements are void.

What are the modes of performance of a contract under the Contract Act?

Actual performance (parties fulfil obligations) or attempted performance/tender (a valid offer to perform that the other party refuses).

What is a valid 'tender' (attempted performance) under Section 38?

An offer of performance that is unconditional, made at a proper time and place, and gives the other party a reasonable opportunity to verify; a valid tender discharges the promisor from further liability without losing rights under the contract.

List the principal modes of discharge of a contract.

Discharge by performance, by agreement/novation, by impossibility/frustration, by lapse of time, by operation of law, and by breach.

What is 'novation' under Section 62 of the Contract Act?

The substitution of a new contract for an existing one, or a change in parties, by mutual agreement; the original contract need not be performed.

State the doctrine of frustration/supervening impossibility under Section 56.

A contract to do an act which, after it is made, becomes impossible or unlawful by an event the promisor could not prevent, becomes void when the act becomes impossible or unlawful.

What is the rule in Section 65 regarding restoration of benefit when a contract becomes void?

When an agreement is discovered to be void, or a contract becomes void, any person who received an advantage under it must restore it or compensate the person from whom he received it.

What is 'breach of contract' and the two types of breach?

Failure of a party to perform its contractual obligation. Types: actual breach (failure at the time performance is due) and anticipatory breach (repudiation before the time for performance).

What remedy options does the aggrieved party have on anticipatory breach (Section 39)?

He may treat the contract as rescinded and sue for damages immediately, or keep it alive and wait for the time of performance, holding the other party liable for actual breach when due.

What is the rule for measure of damages laid down in Hadley v. Baxendale and reflected in Section 73?

Damages recoverable are those arising naturally in the usual course of things from the breach, plus those reasonably in the contemplation of both parties at the time of contracting; remote or indirect losses are not recoverable.

What is the difference between 'liquidated damages' and 'penalty', and how does Section 74 treat them?

Liquidated damages are a genuine pre-estimate of loss; a penalty is a sum stipulated to deter breach. Under Section 74, the court awards reasonable compensation not exceeding the stipulated amount, whether named as penalty or liquidated damages.

What is the injured party's duty to mitigate damages?

The aggrieved party must take reasonable steps to minimise the loss resulting from breach; damages for avoidable loss are not recoverable (explanation to Sec 73).

What is a contract of 'indemnity' under Section 124 of the Contract Act?

A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself or of any other person.

What is a contract of 'guarantee' under Section 126, and who are its three parties?

A contract to perform the promise or discharge the liability of a third person in case of his default. The three parties are the surety, the principal debtor, and the creditor.

Distinguish a contract of indemnity from a contract of guarantee.

Indemnity has two parties and one contract; the indemnifier's liability is primary, contingent on a loss. Guarantee has three parties and (in effect) three contracts; the surety's liability is secondary/collateral, arising on the principal debtor's default.

Define 'bailment' under Section 148 of the Contract Act.

The delivery of goods by one person (bailor) to another (bailee) for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the bailor's directions.

What is a contract of 'pledge' (pawn) under Section 172?

The bailment of goods as security for payment of a debt or performance of a promise; the bailor is the pawnor and the bailee is the pawnee.

Define 'agency' and the test of an agent's authority under the Contract Act.

An agent (Sec 182) is a person employed to do any act for another (the principal) or to represent him in dealings with third persons. An agent's acts within actual or apparent authority bind the principal.

Under the Specific Relief Act 1877, what is required to recover possession of immovable property under Section 8?

A person entitled to possession of specific immovable property may recover it in the manner prescribed by the Civil Procedure Code, by proving his title/entitlement to possession.

What relief does Section 9 of the Specific Relief Act 1877 provide for dispossession?

A person dispossessed of immovable property without his consent otherwise than in due course of law may, within six months, recover possession by suit, notwithstanding any other title that may be set up; title is not in issue in such a suit.

What is the limitation period for a suit under Section 9 of the Specific Relief Act, and can title be pleaded as a defence?

Six months from the date of dispossession. The defendant cannot resist the suit by setting up his own title; the only question is prior peaceful possession and wrongful dispossession.

How can a person entitled to possession of specific movable property recover it under the Specific Relief Act (Sections 10-11)?

He may recover the specific movable property itself (Sec 10) or, where the article is of special value or compensation in money is inadequate, the court may direct delivery of the specific article rather than damages (Sec 11).

What is 'specific performance' of a contract under the Specific Relief Act 1877?

An equitable remedy by which the court directs a party to actually perform the contract as agreed, rather than merely paying damages; it is discretionary and granted where compensation is inadequate.

State the cases in which specific performance may be enforced under Section 12 of the Specific Relief Act.

Where no standard exists to ascertain actual damage; where monetary compensation would not afford adequate relief; where the act agreed to relates to immovable property (presumed inadequate); and where there is a trust.

Name contracts that cannot be specifically enforced under Section 21 of the Specific Relief Act.

Contracts where compensation in money is adequate; contracts requiring minute or continuous supervision; contracts dependent on personal qualifications/volition; contracts in their nature determinable; and contracts too uncertain in terms.

What is the discretionary nature of specific performance under Section 22?

The jurisdiction to decree specific performance is discretionary; the court is not bound to grant it merely because it is lawful, but must exercise discretion soundly and on judicial principles.

When may a court order rectification of an instrument under Section 31 of the Specific Relief Act?

Where, through fraud or mutual mistake of the parties, a written instrument does not express their real intention, the court may rectify it to reflect the true common intention, without prejudice to third-party rights acquired in good faith for value.

When may a court order cancellation of an instrument under Sections 39-41 of the Specific Relief Act?

Where a written instrument is void or voidable against a person who has reasonable apprehension that it may cause him serious injury, the court may adjudge it void and order it cancelled and delivered up.

What is a declaratory decree under Section 42 of the Specific Relief Act 1877?

A decree whereby the court declares a person's legal character or right to property; any person entitled to such legal character or right may sue for a declaration, and the defendant must be bound to deny it.

What is the key proviso/limitation on declaratory decrees under Section 42?

The court shall not make a declaration where the plaintiff, being able to seek further relief than a mere declaration, omits to do so; a bare declaration is refused if consequential relief was available and not claimed.

What is 'preventive relief' under the Specific Relief Act, and how is it granted?

Preventive relief is granted at the court's discretion by way of injunction, restraining a party from doing an act that would cause injury (Sections 52-57).

Distinguish a temporary (interim) injunction from a perpetual injunction under the Specific Relief Act.

A temporary injunction continues for a specified time or until further order and is regulated by the Civil Procedure Code; a perpetual injunction is granted by a decree at the final hearing and permanently restrains the defendant from asserting a right or doing an act (Sec 53-54).

When may a mandatory injunction be granted under Section 55 of the Specific Relief Act?

When, to prevent the breach of an obligation, it is necessary to compel the performance of certain acts which the court is capable of enforcing, the court may in its discretion grant an injunction requiring the defendant to do the requisite acts.

Name two situations in which an injunction cannot be granted under Section 56 of the Specific Relief Act.

To stay a pending judicial proceeding, to interfere with public/legislative bodies, to restrain a person from applying to a legislative body, where damages are an adequate remedy, or to enforce a contract that cannot be specifically performed (among others listed).

What is the object and effect of the law of limitation (Limitation Act 1908)?

It prescribes the time within which suits, appeals, and applications must be brought; it bars the remedy after the prescribed period but does not extinguish the right (except that under Sec 28, right to property is extinguished after the limitation period for possession).

What is the general rule for computing the limitation period under Section 3 of the Limitation Act 1908?

Every suit, appeal, and application made after the prescribed period must be dismissed even if limitation is not set up as a defence; limitation runs from the accrual of the cause of action.

How is time computed under Section 12 of the Limitation Act (exclusion of time)?

In computing limitation, the day from which the period is reckoned is excluded; for appeals and certain applications, the time requisite for obtaining a copy of the decree/judgment is also excluded.

What is the effect of an acknowledgment in writing under Section 19 of the Limitation Act?

A written and signed acknowledgment of liability, made before the limitation period expires, starts a fresh period of limitation from the date of the acknowledgment.

What is the effect of part-payment of a debt under Section 20 of the Limitation Act on limitation?

Payment of part of a debt (or interest on a legacy/debt) before expiry of the period, with an acknowledgment in the handwriting of or signed by the payer, gives a fresh starting point of limitation from the date of payment.

What is 'condonation of delay' under Section 5 of the Limitation Act 1908?

The court's discretion to admit an appeal or application after the prescribed period if the appellant/applicant satisfies the court that he had sufficient cause for not preferring it within time.

To which proceedings does Section 5 (condonation of delay) generally apply, and to which not?

It applies to appeals and to certain applications; it does not, as a rule, apply to suits. 'Sufficient cause' must be shown for the delay, and the court exercises discretion judicially.

What is the effect of fraud on the computation of limitation under Section 18 of the Limitation Act?

Where a person has been kept from knowledge of his right by the fraud of the defendant, the limitation period begins to run from the time the fraud first became known (or could with reasonable diligence have been discovered).

Under Section 28 of the Limitation Act, what happens to the right to property when the limitation period for a possession suit expires?

Unlike the general rule (which bars only the remedy), Section 28 extinguishes the right itself: when the period for a suit for possession expires, the right to that property is extinguished and may vest in the adverse possessor.